Report finds advisers still ignoring climate change investment opportunities

UK investors are still failing to grasp the significant investment opportunity offered by climate change, according to a report from Holden & Partners (H&P).

The report, the second 'Guide to Climate Change Investment' from the IFA and wealth management specialist, notes that climate change investment is not a fad or a bubble and identifies the fundamental growth drivers of investment as limited resources, population growth and the industrialisation of the developing world.

Steven Pyne, partner at H&P, said: "The last two decades have been about excess and over consumption, the credit crisis will usher in a new era where economic and political agendas are driven by sustainability, in particular the efficient use of the world's finite resources."

The guide analyses the various sub-themes of climate change investment, including not only the typical climate change themes such as renewable energy and eco-efficiency, but also incorporates water, agriculture and forestry. The guide also lists the specific funds available to an investor for each sector.

H&P suggests that climate change investing is often ignored as it is seen as risky, despite the fact that it is an already large and growing industry. For example, electricity generation has grown by 2,104pc over the last 50 years and is the largest contributor to greenhouse gas emissions, while countries globally aim to produce 20-30pc of their total energy generation from renewables in the coming years. In 2007, the total global revenue from the 'clean technology' areas of bio-fuels, wind power, solar and fuel cells amounted to $77.3bn and by 2017 this figure is expected to grow to $245.50bn.

Mark Hoskin, partner at H&P, said: "There is still a perception that investing in climate change funds is somehow a high risk equity strategy, but given the fundamentals and the empirical evidence this does not look to be the case."

To comment, contact Simon Danaher on 0207 034 2680 or email: simon.danaher@incisivemedia.com

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